factual

What specific item in the Epcon Communities disclosure document is modified by the Rhode Island addendum?

Epcon_Communities Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. The first chart of Item 17 (Franchise Agreement) of the disclosure document is hereby modified by adding the following to the end of the "Summary" column for item "m.":
    • "Except for a release given in connection with the settlement of disputes, claims or civil lawsuits arising or brought under the Rhode Island Franchise Investment Act (the "Act"), the release described above may not relieve any person from liability imposed by the Act or any rule or order under the Act."
    1. The first chart of Item 17 (Franchise Agreement) of the disclosure document is hereby modified by adding the following to the end of the "Summary" column for items "v." and "w.":
    • "Provided, however, that Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that a provision in a franchise agreement restricting jurisdiction or venue to a forum outside of the State of Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act."
    1. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

Source: Item 23 — RECEIPTS (FDD pages 86–280)

What This Means (2025 FDD)

According to the 2025 Epcon Communities Franchise Disclosure Document, the Rhode Island addendum modifies Item 17, specifically the chart within Item 17 that pertains to the Franchise Agreement. The addendum includes modifications to the "Summary" column for item "m.", adding an exception for releases related to settlements under the Rhode Island Franchise Investment Act. It also modifies the "Summary" column for items "v." and "w.", noting that provisions restricting jurisdiction or venue to outside of Rhode Island or requiring application of other states' laws are void under the Rhode Island Franchise Investment Act.

Furthermore, the Rhode Island addendum stipulates that any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on franchisor statements. This provision overrides any conflicting terms in other documents related to the franchise agreement.

For a prospective Epcon Communities franchisee in Rhode Island, these modifications are significant. They ensure that franchisees retain their rights under Rhode Island law, particularly concerning legal claims and choice of venue. The addendum aims to protect franchisees from unknowingly waiving their rights or being subjected to unfair legal proceedings outside of Rhode Island. Franchisees should carefully review these modifications with legal counsel to fully understand their implications and protections under Rhode Island law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.